ECA 1: Strategic Analysis Global Strategy: Challenges and Choices


ECA 1: Strategic Analysis
ECA1 (70%) – 5,000 word organisational strategic analysis using the appropriate
tools and data sources.  This will assess learning outcomes 1, 2, 4, 5, 6 and 8
First, decide on what you are going to focus your strategic analysis on. The entire
organisation, or a particular strategic business unit?
Start with a simple question for this part of the assessment: where are we now?
Approach this from an internal and external perspective:







1.0 Introduction. 7

1.1 Company Profile. 7

1.2 Cargills Supermarkets 7

2.0 Strategic Analysis. 9

3.0 Internal Analysis 9

3.1. Introduction. 10

3.2. SWOT Analysis. 10

3.3. Core Competencies- 11

3.4. Financial Analysis. 12

3.5. Current Growth Strategies. 13

3.6. Portfolio Analysis. 14

3.7. Internal Structures and Organizational Culture. 16

3.7.1. Internal Structures 16

3.7.2. Organizational Culture. 16

3.8. Stakeholder Analysis 17

3.9. Leadership and attendant challenges. 19

4.0 External Analysis. 20

4.1. Introduction. 20

4.2. PESTEL Analysis. 20

Political Factor 22

Economic factors 22

Social Factor 23

Technological Factor 23

Ecological Factors. 23

Legal Factors. 24

4.3 Strategic Business Initiatives. 24

4.4. Industry Analysis. 24

4.5. Competitor Analysis. 26

4.6. Implications towards the business 27

4.6.1. Industry Life Cycle analysis. 28

4.6.2. Tripe Bottom Line. 29


1.0 Introduction. 32

2.0 Opportunity Identification. 32

.2.1Technology Advancement 32

2.2 Improving Health Conciousness. 33

2.3 Digital Marketing Tendency. 33

2.4 Tendency towards sustainability initiatives. 33

2.5 Availability of untapped market. 34

3.0 Strategic Requirements. 34

4.0 Business Growth Strategies in Next Five Years. 34

4.1 Market penetration. 34

.4.2 Market Development 35

t 4.3 Product development 35

4.4 Diversification. 36

5.0 Portfolio Management 36

6.0 Achievement Of Business Growth. 37

7.0 Conclusion. 37

References 38


Appendix 01 – SWOT Analysis (Detailed) 45

Strengths 45

Weaknesses. 45

Opportunities. 45

Threats. 46











Figure 1-Supply Chain – Retail 10

Figure 2-Market Share Analysis. 10

Figure 3-Mendalow’s Matrix. 22

Figure 4- PESTEL Analysis 24

Figure 5-Cargills Go Green Bag. 27

Figure 6- Cargills Rewards 28

Figure 7-SPAR Sri Lanka. 29

Figure 8-Softlogic Glomark. 29

Figure 9-Industry Life Cycle. 32

Figure 10-Triple Bottom Line. 33









Table 1-SWOT Analysis 11

Table 5-Core Competencies. 11

Table 6-Ratio Analysis 13

Table 7-Growth Strategies. 14

Table 8-Cultural Cobweb. 18

Table 9-Stakeholder Analysis. 19











# Abbreviations Description
1 GDP Gross Domestic Production
2 FMCG Fast Moving Consumer Goods
3 PLC Public Limited Company
4 LKR Sri Lankan Rupees
5 SWOT Strengths, Weaknesses, Opportunities and Threats
6 PESTEL Political, Economic, Social, Technological, Ecological and legal factors
7 OP Operating Profit
8 NP Net Profit
9 PBT Profit Before Tax
10 PAT Profit After Tax
11 CAPEX Capital Expenditure







1.0 Introduction

In the modern business environment characterised by immense challenges and options for an organisation to select from, strategic analysis is essential. Adopting Raikov (2019) definition, a strategic analysis identifies a process of researching an organisation and its operating environment for formulating a strategy. Ghicajanu (2019) supports this by identifying the strategic analysis as guiding definition of both internal and external environments in which a business operates. From the outcomes of the analysis, it is possible to make appropriate strategic solutions for a business. Based on this background information, this report exploits different tools and data sources for carrying out a strategic organisational analysis. From the analysis, appropriate areas of improvement are provided. The strategic business unit chosen for the above definition is Cargills food city, a Cargills Ceylon PLC supermarket chain.

1.1 Company Profile

Cargills (Ceylon) PLC can be identified as one of the most renowned and leading conglomerates in Sri Lanka. Sice1844 commenced its business operations with the retail industry and has diversified its business initiatives towards other business segments.

The company holds major brands such as Cargills Food city, Cargills Magic ice cream, Kotmale, Goldi and Sams Sausages, Miller’s distributors, KFC, TGI Fridays fast food restaurant chains, KIST and KIST Biscuits, which have accumulated a significant portion of target market around the country covering many consumers related segments.

The vision of the company is to be the global corporate role model in community-friendly national development. Its mission is to serve all stakeholders, from the public to the customers, by providing satisfactory service while ensuing reduced cost of living, developing youth skills, and eliminating regional disparity.

The company has achieved a sales revenue of over LKR 107 billion for the year ended 31st March 2020 while retaining a total profit of LKR 2.7 billion, reaching towards the top 20 companies in Sri Lanka (Cargills (Ceylon) PLC, 2020).

1.2 Cargills Supermarkets

Cargills Food City is regarded as the largest supermarket chain prevailing in the country. Cargills only focused on the high-end customer groups with the foreign orientation, which was available for the companies. With the management change of the business, the imported-oriented business platform has transformed into a local-oriented business model through the adoption of the local supply chain.

The supermarket segment of the Cargills is regarded as the first pillar of the business where it initiated its business operations in 1985 with one supermarket in Colombo. Through the numerous strategic initiatives, it has been able to extend its business operations around the country by creating a representation of the outlets in every district.

Figure 1-Supply Chain – Retail

Source: (Cargills (Ceylon) PLC, 2020), Page 15

An integrated supply chain covering suppliers, the company, and the customers would greatly enhance overall business effectiveness.  Products sourced from suppliers to the warehouses and all perishables such as vegetables, fruits, and fish are collected through the collection centres established around the country. Therefore, all products are made available for customers around the country in line with their purchasing patterns.

The company’s retail division has attained a total revenue of LKR 83 billion for the financial year 2020, witnessing a 13% while retaining a total profit of LKR 846 million having a growth of 36% compared with last year.







2.0 Strategic Analysis

Strategic analysis is identified as carrying out in-depth research on an organisation and its operating environment for strategy formulation. This is evidenced in Papulova and Gazova’s (2016) study that focused on evaluating the role of strategic analysis in strategic decision-making. The study found out that strategic analysis assists in assessing and developing an environment inside and outside an organisation and revealing the possibility of opportunities and threats considered in strategic decision-making. This is since Rudnicki and Vagner (2014) note that strategic analysis is used to identify prevalent business environment opportunities while noting the business threats in the business environment. As evidenced in Santos and Fukushima (2017), the potential tools that can be used include SWOT, PESTEL, Porter’s 5 Forces analysis, and VRIO resource analysis, among others used to assess the internal and external business consequences.

Moreover, perspectives such as product situation, competitive situation, distribution situation, environment analysis, and the identification of issues and opportunities analysis are reflected. Therefore, as far as Cargills supermarket SBU is concerned, there are an enormous amount of future endeavors to be accomplished, which needs to be a critical evaluation of the current situation of the business is vital (LAKE, 2020).

Thus, internal and external business evaluation is undertaken as follows.

3.0 Internal Analysis


3.1. Introduction

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